GM Reports 2014 Proft Despite $3.5B in Recalls
General Motors has revealed its financial figures from last year.
Despite setting a record with over 80 recall campaigns in 2014 that cost the American automaker $3.5 billion, it turned a $2.8 billion net profit after reaching a global sales record of 9.9 million vehicles. Around 36 million vehicles were affected by all the call backs, including the massive ignition switch recall that is linked to at least 51 deaths. The company has also set aside $315 million for the ignition switch recall and has so far paid out $93 million in claims.
SEE ALSO: GM Ignition Switch Deaths Hit 51, Expected to Continue Rising
In the U.S. alone, GM sold over 2.9 million vehicles marking a 5.3 percent increase compared to 2013. The company also announced that it has $3 billion in cash or “cash equivalents” with another $5.3 billion in credit that can be pulled immediately. Even with all the turmoil surrounding the automaker with its recalls, last month’s sales were up 18.3 percent over January 2014 with Chevrolet notching its best sales month since 2008 and GMC having its best since 2004.
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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LOL! I wish I could afford to squander $3.5 BILLION and still make some money. Incredible.